International investments in green make sense. This week’s messages have looked at the opportunity of international investments in green. There is a dramatic need to alter the way humanity lives. This need generates enormous international investment potential. It creates international investment opportunity because green shifts the values of space. Take farming as an example.
In the old (existing) brown mindset, bug is better. Dairies for example must be large and a system must be in place for pasteurization etc. so the milk has a long shelf life. In other words, to get utility from milk requires a high entrance investment in lots of space, equipment and structure. In short space had little value since you needed so many cows and the benefits of scale to succeed.
Green is changing this. A Salisbury Post (North Carolina) article entitled “Trying organic: traditional dairy farming no more” explain how values of space change when it says:
“Alan Buddy Hoffner and his son, Chris, decided they had three choices for their dairy business: get a lot bigger, call it quits or try organic. They took choice three and are in the midst of converting their herd to organic, which means going all-natural as far as what goes into the dairy cows. ‘Everything they consume: grass, grain and minerals,’ said Chris Hoffner, the fourth generation of dairy farmers on their land in Mount Ulla. Right now, the 27 cows they milk that are certified organic are enjoying grass the Hoffners plant that stays green all winter.
“The Hoffners have 70 or 80 other cows that are more than 2 years old and are in the transition from conventional to organic. The younger ones were born into the organic way of life. It’s all part of a turn to more environmentally conscious farming, which also includes practices like no-till planting that never breaks open the ground. “Erosion drives me crazy,” Buddy says. The Hoffners don’t plan to have more than 100 organic milking cows, which is not a lot in these days of massive dairy operations with 1,000 or more cows on a single farm. Going organic isn’t so much about adding healthy items to a cow’s diet. ‘It’s what’s not in it: hormones, no genetically modified plants — natural, the way it ought to be.’
“The Hoffners and another local dairy farmer, Rick Parker, sell their milk as part of the Organic Valley co-op, which only has one other organic farmer in North Carolina. Overall, Organic Valley has 922 farmers in 27 states and one Canadian province providing milk. The Hoffners own 300 acres and lease about that much more in the area once owned by the city of Kannapolis. The Landtrust for Central North Carolina bought the land from the city in a deal to protect about 1,100 acres from development. The Hoffners plan to have 600 acres certified organic eventually. They use a type of strip grazing with their cows, which involves moving an electric fence to a different section every couple days as the cows eat there. They have different rules about pumping out waste that they use as fertilizer on their fields. What they see as they look at their cows grazing peacefully in wide open spaces pleases them so far. ‘They seem to be healthier in a natural environment. They’re healthier than others in factory farms,’ Chris said.”
These messages have looked at the investment potential in the cooperative that produces “Organic Valley” Milk has been organic and farmer owned since 1988. Their philosophy is based on the health and welfare of people, animals and the earth. The coop now consists of 900 farm families who share a voice in the direction of the business. This is refreshing to see them compete in this era where big business dominates everything including government regulations on what organic really is. This cooperative represents about 10% of America ’s organic farmers. Each farmer establishes equity when they join the cooperative and it has a profit sharing model that pays 45% of the profit to the farmers, 45% to the employees and 10% profits to community. To support the continued growth the Organic Valley Cooperative is raising capital through the sale of Class E, Series 1 preferred Stock.
Continue this message and see more on Ecuador real estate and values of space.
Until next message good international investments to you.
At our upcoming IBEZ in N.C., we will update our International investment portfolio, look at water investment as well as our latest multi currency portfolios and much more. Join us May 25 – 27, 2007 at the International Business and Investing Course in North Carolina. Thomas Fischer joins me to update global economics there.